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Capstone Reports Additional High Grade Intercepts & Expanded Drill Program at Minto North

Hole 09SWC456 intercepts 3.0% Cu over 33.3m (including 4.9% Cu
over 11.7m)
Hole 09SWC454 intercepts 2.3% Cu over 29.9m (including 4.7% Cu
over 9.0m)
VANCOUVER, May 5 /CNW/ - Capstone Mining Corporation (CS: TSX) today
announced assay results from six additional exploration drillholes completed
on the new "Minto North" discovery at its Minto Mine in the Yukon. Drilling at
the Minto North target, located approximately 600 metres north-northwest of
the current open pit mining area, continues to return high grade copper-gold
intercepts over impressive thicknesses. Drilling has paused for spring freshet
but will commence again after ice breakup on the Yukon River is complete.
Highlights of assays from the most recent drillholes are summarized in the
table immediately below and the full results for the six new holes are
provided in the attached table.
Assay Highlights
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Hole ID Target From To Interval Interval Copper Gold Silver
Area (m) (m) (m) (ft) (%) (g/t) (g/t)
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09SWC-454 Minto North 69.4 99.3 29.9 98.1 2.29 1.34 8.2
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Including 80.5 89.5 9.0 29.5 4.73 2.78 18.0
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09SWC-456 Minto North 66.2 99.5 33.3 109.3 2.96 1.38 10.0
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Including 87.8 99.5 11.7 38.4 4.87 2.67 19.4
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"Minto North has quickly developed into a significant discovery of high
grade, near surface, thick zone of copper-gold mineralization," said Stephen
Quin, President &amp; COO of Capstone. "We aim to rapidly drill off a well defined
mineral resource and advance the metallurgical testing and other aspects of
this exciting discovery so that its economic potential can be determined. In
addition, we aim to expand our exploration to see if there are any more Minto
North's out there."
Because of the continued high-grade nature and relatively shallow depth
of the Minto North mineralization, Capstone is prioritizing its evaluation
with plans to infill this near surface, bornite-rich, high-grade copper-gold
deposit and produce a NI43-101 compliant mineral resource estimate before year
end. In order to fast track further evaluation of the economic potential of
the Minto North deposit, Capstone has initiated a preliminary program of
metallurgical testing and waste characterization. Sampling for this program is
complete and the samples are en route to laboratories for testing.
The Minto North discovery also opens up significant additional
exploration potential in the northern half of the Minto Mine property and
Capstone intends to lay the foundation in 2009 for more extensive exploration
in this largely neglected, northern half of the property. Additional targets
adjacent to Minto North will be drill tested when drilling resumes.
Minto North Target
Mineralization at Minto North has been outlined over a minimum area
measuring approximately 200m by 125m in aerial extent, as defined by an
initial drill program using a drillhole spacing of 40 metres by 40 metres.
Capstone intends to infill the initial pattern when drilling resumes in June
to give a maximum spacing of approximately 28m between holes, similar to that
used to define reserves elsewhere at the Minto mine.
High grade holes 09SWC-454 and -456 reported today are located near the
centre of the drilled area and the approximate core of the deposit. Holes
09SWC-455, -460, -461 and -463 are all located on the north perimeter of the
mineralization and are thought to be north of a fault (inferred from
geophysics) that bounds the deposit in that direction. This is a recurring
theme at Minto, with all of the major deposits (Ridgetop, Area2, Area 118 and
the Main Deposit) being fault bounded on the north side.
Capstone also just completed a sampling exercise on diamond drill core to
get material for metallurgical testing and metal leach plus acid rock drainage
characterization. The aim is to evaluate the mineral processing and recovery
characteristics of the mineralization and characterize waste rock and tails.
In keeping with Capstone's track record of rapid assessment and optimization,
these various evaluations are being undertaken prior to obtaining a mineral
resource estimation in order to fast track any future economic evaluation of
Minto North as a platform for further organic growth.
Until the discovery of Minto North, the exploration potential on the
property north of the DEF fault (which defines the northern boundary of the
Main Deposit) was thought to be limited. Given the very attractive discovery
at Minto North, planning is now underway for an exploration program to explore
six to eight other, similar magnetic targets, located within 1.5 kilometres of
Minto North and no more than 1.5 kilometres from the current open pit mine and
mill area with targeting and prioritization supported by ground geophysics.
For current drillhole locations please view the accompanying map:
http://www.capstonemining.com/_resources/images/2009_18_CS_C.jpg
For a current view of drill results in priority areas across the property
please view the accompanying map.
http://www.capstonemining.com/_resources/images/2009_18_CS_D.jpg
For an inset view of drill results at Minto North please view the
accompanying map.
http://www.capstonemining.com/_resources/images/2009_18_CS_M.jpg
The TSX does not accept any responsibility for the adequacy or accuracy
of this press release.
Quality Assurance
The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements set out in National
Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President &amp; COO
for Capstone Mining Corporation. The exploration activities at the Minto
project site are carried out under the supervision of Brad Mercer, P. Geol.,
V.P. Exploration (Canada) for Capstone.
The analytical method for the copper and silver analyses is aqua regia
digestion of the samples followed by atomic absorption spectroscopy. Gold is
analysed by fire assay fusion with atomic absorption spectroscopy finish for
gold. Analyses are carried out by ALS Chemex in North Vancouver. When visible
gold is noted in drill core samples or regular fire assay values appear
abnormally high, the pulp and screen metallic assay method is used to
determine the total gold content and gold contents of different size
fractions. This is considered industry best practice when dealing with coarse
gold mineralization where a nugget effect is suspected. This determination is
accepted as the most representative value and is used in the assay database
for resource calculations. Blank and standard samples are used for quality
assurance and quality control. Where more than two check samples assay
outside expected ranges, the entire batch is re-assayed. After the completion
of planned drill programs at Minto, random check assays will be carried out by
Acme Analytical of Vancouver.
Forward-Looking Statements
This document may contain "forward-looking information" within the
meaning of Canadian securities legislation and "forward-looking statements"
within the meaning of the United States Private Securities Litigation Reform
Act of 1995 (collectively, "forward-looking statements"). These
forward-looking statements are made as of the date of this document and
Capstone Mining Corp. (the "Company") do not intend, and do not assume any
obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance
and reflect Company management's expectations or beliefs regarding future
events and include, but are not limited to, statements with respect to the
estimation of mineral reserves and mineral resources, the realization of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, success of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. In certain cases,
forward-looking statements can be identified by the use of words such as
"plans", "expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or "will
be taken", "occur" or "be achieved" or the negative of these terms or
comparable terminology. By their very nature forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors include,
among others, risks related to actual results of current exploration
activities; changes in project parameters as plans continue to be refined;
future prices of resources; possible variations in ore reserves, grade or
recovery rates; accidents, labour disputes and other risks of the mining
industry; delays in obtaining governmental approvals or financing or in the
completion of development or construction activities; as well as those factors
detailed from time to time in the Company's interim and annual financial
statements and management's discussion and analysis of those statements, all
of which are filed and available for review on SEDAR at www.sedar.com.
Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward looking
statements.
Details of Minto North (only) Drill Results
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To accompany Capstone Mining News Release Dated May 5, 2009
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Hole ID From To Interval Interval Copper Gold Silver
&amp; Interval Target (m) (m) (m) (feet) (%) (g/t) (g/t)
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09SWC-390,
-392, -393,
-402, -404,
-406, -408,
-410 Minto North Assays Previously Released
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09SWC-453 Minto North Assays Pending
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09SWC-454 Minto North 69.4 99.3 29.9 98.1 2.29 1.34 8.2
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Including 80.5 89.5 9.0 29.5 4.73 2.78 18.0
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And 133.2 159.2 26.0 85.3 0.31 0.11 1.64
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09SWC-455 Minto North No Significant Intersections
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09SWC-456 Minto North 66.2 99.5 33.3 109.3 2.96 1.38 10.0
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Including 87.8 99.5 11.7 38.4 4.87 2.67 19.4
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and 113.9 138.2 24.3 79.7 0.36 0.17 1.4
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09SWC-457
to -459 &amp;
-462 Minto North Assays Pending
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09SWC-460,
-461,
-463 Minto North No Significant Intersections
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09SWC-464
to -475 Minto North Assays Pending
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(*) Based upon current interpretations the intersected interval is
believed to be at or close to the true thickness.